Chapter 15 - Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues CHAPTER 15: NOT-FOR-PROFIT ORGANIZATIONS – REGULATORY, TAXATION, AND PERFORMANCE ISSUES Answers to Questions 15-1 A state government grants legal existence to a not-for-profit entity in the form of a not-for-profit corporation or as a charitable trust. As a result, the state has a responsibility to monitor the actions of the NPO’s managers, and the NPO has a responsibility to report, as required, to the state government. The public looks to the state to monitor the charitable organization so it operates for the public good. Very often these regulations are in the nature of consumer protection, such as licenses for charitable solicitation. If a not-for-profit corporation or trust applies to the federal government for tax-exempt status, and it is granted, then the Internal Revenue Service has been designated as the federal office that ensures compliance with laws and regulations over tax-exempt entities. 15-4
This is the end of the preview. Sign up
access the rest of the document.